Rental Yield Calculator
Calculate gross and net rental yield on a property. Enter monthly rent, annual costs and property value to see your yield percentage instantly.
Updated 2026-06-14 · Free · No sign-up · Runs privately in your browser
Show the formula & steps
How the Rental Yield Calculator Works
Rental yield shows how much income a property produces as a percentage of its value. It is the quickest way to compare the earning power of different rentals. Enter the monthly rent, your annual costs, and the property value or purchase price, and the calculator returns both gross and net yield.
The Formula
Gross yield uses rent alone:
Gross yield (%) = annual rent ÷ property value × 100
Net yield subtracts your running costs first:
Net yield (%) = (annual rent − annual costs) ÷ property value × 100
Annual rent is simply the monthly rent multiplied by 12. Net yield is the more realistic figure because it reflects what you keep after expenses.
Worked Example
Suppose a property is worth 400,000 dollars, rents for 2,000 dollars a month, and has 6,000 dollars in annual costs:
- Annual rent = 2,000 × 12 = 24,000 dollars
- Gross yield = 24,000 ÷ 400,000 × 100 = 6.00%
- Net yield = (24,000 − 6,000) ÷ 400,000 × 100 = 4.50%
The gross yield of 6% looks attractive, but the net yield of 4.5% is the number that reflects real returns after costs.
Gross vs Net Yield
| Measure | What it captures | Typical use |
|---|---|---|
| Gross yield | Rent only, before costs | Quick comparison of listings |
| Net yield | Rent minus running costs | Realistic income return |
Tips for an Accurate Yield
- Use the price you actually pay. Add stamp duty, legal fees and refurbishment for a true cost basis if you want a purchase-cost yield.
- Budget for vacancy. A few weeks of empty months each year reduce real yield.
- Keep costs current. Insurance, taxes and management fees drift over time, so revisit the figures yearly.
- Compare net, not gross. A high gross yield can hide heavy costs that flatten the net return.
This tool is for estimation and comparison. Verify rents, costs and values before making an investment decision.
Frequently asked questions
How do you calculate rental yield?+
For gross yield, divide annual rent by the property value and multiply by 100. For a 400,000 dollar home renting at 2,000 dollars a month, annual rent is 24,000 dollars, so gross yield is 24,000 / 400,000 x 100 = 6%.
What is the difference between gross and net rental yield?+
Gross yield uses rent only, while net yield subtracts annual costs such as maintenance, management, insurance and taxes before dividing by the property value. Net yield gives a truer picture of what the property earns.
What is a good rental yield?+
Many landlords look for a gross yield of 5% to 8%. Lower yields are common in expensive cities with strong price growth, while higher yields often appear in cheaper markets with more risk or upkeep.
What costs should I include in net rental yield?+
Include property management, repairs and maintenance, landlord insurance, property taxes, service charges, letting fees and an allowance for vacancy. Mortgage interest is sometimes added too, depending on how you measure return.
Does rental yield include the mortgage?+
Standard gross and net yield are based on the property value and do not include mortgage payments. To measure return on the cash you actually invest after financing, use cash-on-cash return instead.